Bankruptcy and Buying Junk Cars- What to Do?

It is difficult to get back on your feet if you cannot afford to buy a car. What should you do? There are ways to overcome bankruptcy, but it's not an insurmountable obstacle. Even if you recently filed for bankruptcy, you can still buy junk cars in Oklahoma City if you are careful and patient.

What Happens When You File For Bankruptcy

Debt-ridden individuals are typically the only ones to file for bankruptcy. Even though bankruptcy can protect you from debt holders and give you room to breathe to recover from overpowering debt, it isn't a magic pill. Creditors will be less eager to lend you money after you file for bankruptcy because bankruptcy has a significant impact on your credit.

Chapter 7 and Chapter 13 are the two most common forms of individual bankruptcy in the United States. Even though you'll be forced to give up some of your assets in order to pay off your debt, Chapter 7 bankruptcy cancels debts that the liquidation does not cover. A Chapter 7 bankruptcy will remain on your credit report for a long time, and only if you meet certain requirements can you file for it.

It's more complex and difficult, but in some ways safer, to file for Chapter 13 bankruptcy. It is possible to avoid losing your assets in Chapter 13 bankruptcy by establishing a repayment plan for the majority of your debts. There is a limit to the amount of debt that can be discharged in a Chapter 13 bankruptcy, and only those with a certain amount of disposable income are eligible.

Bankruptcies filed under Chapter 7 are far more common. Both types of bankruptcy are extremely difficult to recover from. Getting a bank loan for a car is going to be much more difficult if you declare bankruptcy to get your finances back on track.

After Bankruptcy, Buying a Car

So, what are your options for obtaining a vehicle following a bankruptcy? Many times you'll have just a few options to choose from.

Paying Cash:

After bankruptcy, the best way to get a vehicle is to avoid financing altogether and pay cash. Avoid the hassle of financing your car by paying in full, and you won't have to worry about making monthly payments either. Even if you don't have a lot of money, this option has its drawbacks. For example, it can be difficult to come up with a large sum of money to buy an expensive car.

Looking for Loans:

In the event that you've been turned down for a loan from one bank, it doesn't mean you'll be turned down by every bank. You might be able to get a loan from a traditional lender if you have good credit, a recent bankruptcy, and other factors like your income. Another option is to apply for a loan at a credit union in your area. Compared to large banks, credit unions typically offer more lenient loan terms and are more willing to work with borrowers in times of need.

Rebuilding Your Credits:

There are times when it's better to wait until you've rebuilt your credit before shopping for a car. You can get cheaper rates and repayment terms if you wait to rebuild your payment history and demonstrate to creditors that you are not a high-risk investment. With a working car and no immediate need for another, this may be the best option for you. If you want to buy junk cars, you need to rebuild your credits.

Finding a Dealer:

If you're still looking for a used car after bankruptcy, a final option is to visit a financial support car dealership. Customers who might not be accepted by a bank can get loans from these dealers because they work directly with their own finance departments rather than through banks or other lenders. Buyers with less-than-perfect credit who need a car right away may find it helpful to look into special financing options.

Come to Cash4Cars today if you've recently filed for bankruptcy in Oklahoma City and need a new vehicle to help you get back on your feet. Buyers who have recently declared or surfaced from bankruptcy are eligible for special financing options from us. The loan process can be completed in just a few minutes, and we also offer free vehicle information reports and free 10-year warranties on all of our vehicles!